According to the Open-Economy Macroeconomic Model, an Increase in the Canadian

question 95

True/False

According to the open-economy macroeconomic model, an increase in the Canadian government budget surplus increases Canadian net capital outflow, causes the real exchange rate of the dollar to depreciate, and increases Canadian net exports.

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Definitions:

Weak Relationship

Describes a connection or correlation between two variables or entities that shows minimal interdependence or association.

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together.

Strength

The quality or state of being physically strong, or the capacity to endure or withstand difficult conditions.

Direction of Relationship

In research, refers to how one variable influences or is associated with changes in another variable, indicating whether the relationship is positive or negative.